A major part of establishing a Trust Based Estate Plan is the “funding” of the Trust. Oversimplified, this involves the re-titling of assets such as bank accounts, real estate and brokerage accounts. It also involves dealing with Life Insurance Beneficiaries. While every situation is different, we often recommend naming the Trust as the beneficiary.
Because it tends to provide the maximum amount of flexibility and enables you to best carry out your wishes.
- If you are a surviving spouse, and if you are the trustee, you can still use the insurance money for whatever you need, or whatever you want.
- If you are a surviving spouse, and disabled, your successor Trustee can manage the money for your benefit.
- If there is no surviving spouse then the funds are there for the children or other beneficiaries.
In other words, you tend to kill multiple birds with one stone.
Again, every situation must be weighed on its own, but as a general guideline this is a good place to start.
In order to change the beneficiary you will need to properly complete a form supplied by your Insurance Company and submit it to them.
Contact us if you have more questions concerning how to designate your beneficiary.